Big Crackdown on Anil Ambani: ED Attaches ₹3,084 Crore Worth of Assets

Big Crackdown on Anil Ambani: ED Attaches ₹3,084 Crore Worth of Assets

In a significant enforcement action, the Enforcement Directorate (ED) has provisionally attached assets worth ₹3,084 crore belonging to the Anil Ambani-led Reliance Group under the Prevention of Money Laundering Act (PMLA). The attachment order, issued on October 31, marks one of the largest actions taken against a major Indian industrial group in recent years.

The attached properties include a family bungalow in Mumbai’s Pali Hill, the Reliance Centre in Delhi, and several other real estate assets spread across Delhi, Noida, Ghaziabad, Mumbai, Pune, Thane, Hyderabad, Chennai, and East Godavari (Andhra Pradesh). These comprise residential units, office premises, and land parcels.

The Case: Allegations of Diversion and Laundering

The case revolves around diversion and laundering of public funds raised by two Reliance Group entities — Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL).

Between 2017 and 2019, Yes Bank allegedly invested ₹2,965 crore in RHFL and ₹2,045 crore in RCFL through various financial instruments. However, by December 2019, these investments turned non-performing assets (NPAs), with outstanding dues of ₹1,353.5 crore for RHFL and ₹1,984 crore for RCFL.

The ED contends that the funds raised were misused and routed through complex financial channels, ultimately benefitting companies linked to Anil Ambani’s group. Investigators have identified a pattern of “intentional and consistent control failures”, such as loans sanctioned without due diligence, blank or undated security documents, and disbursals made even before formal loan applications.

Fund Flow Irregularities: SEBI Conflict of Interest Angle

Investigations also revealed that direct investment by Reliance Nippon Mutual Fund in Anil Ambani-led financial entities was prohibited under SEBI norms, designed to prevent conflicts of interest. However, funds collected from the public were allegedly routed indirectly through Yes Bank’s exposure to RHFL and RCFL — an example of how financial layering can disguise the origin of funds.

This indirect routing of funds, often referred to as round-tripping (explained below), is a key concern in corporate finance compliance and anti-money laundering frameworks.

Broader Probe into Reliance Communications

The ED has also expanded its investigation into Reliance Communications Limited (RCom) and its affiliates, citing preliminary findings of loan fraud amounting to ₹13,600 crore. Of this, about ₹12,600 crore was allegedly diverted to connected entities, while ₹1,800 crore was invested in fixed deposits and mutual funds and later liquidated to benefit group companies.

Investigators also uncovered misuse of bill discounting and loan evergreening practices to maintain liquidity and mask repayment defaults.

What ED says?

The Enforcement Directorate has emphasized that attaching these properties is part of its mandate to trace the proceeds of crime and protect public interest. The agency aims to ensure recovery of misused funds and safeguard investor confidence in India’s financial system.

Special Knowledge Section

Understanding Round-Tripping in Finance

Round-tripping refers to a circular movement of funds, often across jurisdictions, where money leaves a company or country and then returns to it — usually disguised as legitimate investment or revenue.

While round-tripping can sometimes occur for tax optimization or investment structuring, it is often used to launder money, evade taxes, or inflate corporate valuations.

Example of Round-Tripping:

• A company sends money abroad through a subsidiary or intermediary.

• The funds are invested in an offshore entity, say in Mauritius or Singapore.

• The same funds return to India as foreign investment or share capital, appearing as new inflow.

• This creates a false impression of external investment or business growth.

Why this is a problem?

• Disguises the true source of funds.

•  Violates foreign exchange and tax regulations.

•  Distorts market transparency and corporate valuations.

•  Facilitates money laundering under laws like the PMLA.

Regulatory Framework in India:

• Prevention of Money Laundering Act (PMLA) – Empowers ED to attach assets derived from such activities.

• Foreign Exchange Management Act (FEMA) – Regulates cross-border movement of capital.

• Income Tax Act & SEBI Regulations – Address tax evasion and insider investment practices.

Round-tripping remains a serious compliance risk for corporates, and regulators worldwide continue to strengthen oversight to detect such financial cycles.

What it means?

The ED’s latest action against the Anil Ambani-led group underscores India’s tightening stance on financial misreporting and fund diversion. With ₹3,084 crore worth of assets now attached and further investigations underway, the case could set an important precedent in corporate accountability and anti-money laundering enforcement.

As the probe unfolds, it also highlights the growing importance for financial institutions and corporates to adopt robust governance, transparent fund flow mechanisms, and compliance culture to avoid entanglement in complex financial investigations.